A bunker fuel and oil report, detailing the day per day trading patterns and prices in the market.The report is prepared from OW Risk Management and covers all major bunker fuel oil markets around the world, including all major ports, ranging from Singapore to Rotterdam.

Market in Brief

Yesterday crude prices erased some last days’ gains. The surprising “No” from the UK Parliament to military action into Syria without UN backing caught the market. Brent Crude lost 3 usd in a couple of hours. The October WTI futures settled at $108.80/bbl, losing -$1.30 and Brent closed at $115.16/bbl, falling -$1.45. On the economic side, the Q2 US GDP was revised up to 2.5% from 2.2%. The weekly US jobless claims also reflected positive result dropping by -6k to 331k. Ironically, the better than expected economic data builds up a stronger case for the US Federal Reserve to scale down its bond purchasing programs sooner. Yesterday, the equity market rebounded and the US dollar strengthened. Today, we will have a series of US economic data with the July Personal Income and Spending, Michigan Consumer Confidence and Chicago Purchasing Manager. This morning, crude prices are trading lower.

Fueloil Specifics

The NWE bunker fuel oil prices remained on the high side tracking Brent values. Delivered 380cst product in Rotterdam and Antwerp was assessed some $2/mt lower compared to previous day. Delivered premiums stayed low, with some suppliers offering even below 3.5% Rtdam fob barges. The Singapore fuel oil markets rose by another +$3.0 to +$4.0 during the Asian Platts window yesterday on strong crude price movement. The Singapore heavy residual inventory saw a big build of +1.56 mbbl to 22.23 mbbl. The delivered bunker premiums were still fragile at around +$0.50 above cargo prices. This morning both markets are trading down.

Settlement & Indications (mid values)

Product Yesterday's Values Forward Indications Product Change Last Dir. Sep Oct Nov Q413 Q114 2014 NYMEX WTI Swap (1st month) (1,30) 108,80 ↓ 107,76 106,94 105,44 105,43 101,27 96,84 ICE Brent Swap (1st month) (1,45) 115,16 ↓ 114,08 112,61 111,38 110,33 108,41 104,95 ICE Gasoil Swap (1st month) 8,75 978,75 ↓ 968,67 965,50 959,50 959,75 941,56 913,90 3.5% Barges FOB Rtdm (4,00) 602,50 ↓ 597,50 599,50 599,75 600,00 601,75 590,75 3.5% Cargoes FOB Med (2,75) 600,75 ↓ 593,75 596,00 595,50 594,50 595,75 585,75 1.0% Cargoes FOB NWE 0,25 622,75 ↓ 620,50 624,50 626,75 626,50 629,50 617,25 3% no. 6 USGC WB (1,53) 95,84 ↓ 94,50 94,25 93,75 93,75 93,70 92,00 380 CST Cargoes FOB S'pore 3,00 617,50 ↓ 614,50 616,75 617,50 616,75 618,25 609,25 0.1 % GO Barges FOB Rtdm 8,00 976,00 ↓ 970,25 967,25 961,25 961,25 943,25 915,25 Physical Rotterdam 380 CST (3,00) 605,00 ↓ 602,75 604,75 605,00 604,75 606,00 595,00 Physical Singapore 380 CST 3,50 618,50 ↓ 619,75 622,00 623,75 622,75 623,50 614,50

Economy fundamentals this week

Fundamental Indicators Statistic Importance Date Time Period Consensus Last Actual Durable Orders High 26-Aug 8:30 AM Jul -4.5% -3.9% -7.3% Case-Shiller 20-city Index Medium 27-Aug 9:00 AM Jun 12.0% 12.2% 12.1% Consumer Confidence High 27-Aug 10:00 AM Aug 77.0 80.3 81.5 MBA Mortgage Index Medium 28-Aug 7:00 AM 28-aug NA -4.6% -2.5% Pending Home Sales Medium 28-Aug 10:00 AM Jul -1.0% -0.4% -1.3% Initial Claims Medium 29-Aug 8:30 AM 24-aug 335K 336K 331K GDP- Second Estimate Medium 29-Aug 8:30 AM Q2 2.1% 1.7% 2.5% Personal Income Medium 30-Aug 8:30 AM Jul -0.1% 0.3% - PCE Prices- Core Medium 30-Aug 8:30 AM Jul 0.2% 0.2% - Chicago PMI Medium 30-Aug 9:45 AM Aug 53.0 52.3 - Michigan Sentiment- Final Medium 30-Aug 9:55 AM Aug 78.0 80.0 -

Source: OW Risk Management